What did I do today? Let me answer some of your burning questions. However, If you have more ask them!!!

My wife asked me, "What did I do today?"


She is often curious so I explained.   Today, I talked both a Realtor and a financial advisor about helping their clients get the best deal possible.  I tracked down some extra paperwork the bank had requested on my self-employed client.  Reviewed the mortgage rates and the product changes of three banks.  Then I had a meeting with a business development officer who wanted to tell me about why his products were better than his competition.  I have not even gone for lunch yet!

Since I get questions all the time I thought of a couple more that often come up.   I am thinking your next question might be: What do I do exactly as a Alberta mortgage brokers anyways, you ask?

We have to break it down somewhat to properly explain.   You see, normally there are two ways to get a mortgage--through one of the main big five banks or through a licensed mortgage broker.

I am sure you know about the banks.   You go in, you argued about rate for the afternoon.  They talk to the Branch manager because they have the rate discretion you are after.   The other side of the coin to be as simple as possible a mortgage broker is the middle man between the client and the bank/lender, whereby the mortgage broker submits the client's mortgage application to the most suitable lender.  This is usually the lender who offers the lowest rate.  Similar to that of how any broker works, a mortgage broker essentially matches sellers (lending institutions) with buyers (mortgage applicants), whose main objective is to get the best deal.  The best deal in terms of mortgages, again, that all comes down to the lowest mortgage interest rate, and privileges associated with that mortgage which some banks change their rates by the hour.

Mortgage Brokers are not employed by any of the banks or lenders; they are, rather, independent mortgage professionals who in Alberta are licensed and work for you.

How much do I as a mortgage brokers charge for my services?
NOTHING!  How does FREE sound?   With the small disclaimer being: unless I am brokering a commercial mortgage (i.e. a mortgage for a commercial/retail building), or if the lender of choice is a private lender, a person or private lending company who lends their capital at a premium because or badly bruised credit or a bankruptcy.  For a traditional borrower however with average to above average credit who are looking for a regular mortgage nothing at all.

How do I get paid as a Calgary mortgage broker?
I work solely on commission.  I get paid after the deal closes, and when I find you the perfect home.  I usually give my top three choices, and why they are the best for you and work out what you are most comfortable.

I hear claims all the time that Alberta mortgage brokers get lower rates than banks even if and when the client is a long-time customer of his/her bank?  How is that even possible!   

If Mortgage Brokers account for approximately $50 billion of mortgages in Canada each year, then this volume of mortgage business the mortgage brokers write are offered discounted rates from the banks/lenders.  Ever shopped at a wholesale store?   Buy in bulk and get a discount.  They don't pay me to sit in the branch like I used to.  They don't pay my salary, CPP, withholding taxes, or even have to worry about a Union.

What banks do you as a mortgage brokers deal with?

Being a Mortgage broker I have access to over 50 different lending institutions.  If you take into account all these different choices available for a mortgage applicant, would it not stand to reason that this puts them in a superior position to be confident and secure in the thought that they have the right type of mortgage based on their own unique personal situation.  Its like going to one car dealership and hoping that they have the perfect car for you.   I am sure they could sell you something on the lot, but does it fit seven, or can you plug it in to the wall to recharge?  Like cars, not all mortgages, or even mortgage brokers are created equal.

I have never recommended limiting yourself to just your bank because you feel loyal.  It’s not cheating if you want to have better service, better rates, and professional advice from a MortgageBroker like me!